The U.S. Trustee Program (USTP) announced today that the independent auditor appointed under a nationwide settlement between the USTP and Capital One Bank N.A. has filed her final report, bringing the settlement to a successful conclusion, according to a USTP release yesterday. The auditor reported that Capital One refunded approximately $2.35 million it received after filing erroneous claims in bankruptcy cases for debts previously discharged in bankruptcy, as well as approximately $30,000 in fees and expenses incurred by consumers and bankruptcy trustees who objected to erroneous claims. The report also confirmed that Capital One corrected the flawed process that led to the filing of the erroneous claims. As part of the settlement filed in 2008 in the U.S. Bankruptcy Court for the District of Massachusetts, Capital One had agreed to an audit overseen by an independent auditor. Former Bankruptcy Judge Melanie Cyganowski, who was selected as the auditor, filed her final report after examining more than 850,000 claims filed by Capital One in bankruptcy cases nationwide. Under the settlement, Capital One paid the auditor’s fees and costs of conducting the audit.
